SANTA CLARA, Calif. — The explosion of over-the-top (OTT) and user-generated digital video content in the current multi-screen environment is creating strong demand for monetization technologies among both content owners and advertisers. The targetability, personalization capabilities, and interactivity offered by online video advertising solutions are expected to drive the $30 billion market toward $120 billion by 2023.

“By the end of the forecast period, video ads are forecast to account for more than 20 percent of all digital ad spending,” said Aravindh Vanchesan, Digital Transformation Industry Analyst at Frost & Sullivan. “Mobile video ad spending, in particular, will account for 75 percent of digital video ad spend as advertisers, media companies, and publishers follow audiences away from traditional TV and desktop.”

The rapidly expanding viewer pool of live/linear and video-on-demand (VOD) content such as sports and special events has spawned a large market for seamless ad delivery (dynamic ad insertion (DAI)) that is consistent across devices and platforms. Cloud-powered server-side ad insertion (SSAI) will emerge the dominant technology as it meets stringent monetization and user experience demands.

“While ad insertion technologies are finding high uptake among advertisers, ad blockers also are becoming common on both desktop and mobile platforms. This is resulting in lower completion rates and lost revenue opportunities,” noted Vanchesan. “Besides, as the competition continues to intensify, there will be a need to prioritize market education and awareness initiatives to communicate vendors’ competitive strengths in capabilities.”